Airtel cleared to buy 4G spectrum from Aircel
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India’s Bharti Airtel has received approval for its 35 billion rupee ($521.2 million) acquisition of 4G spectrum from Maxis-owned Aircel.
The Telecom Ministry has agreed to allow Bharti Airtel to acquire 20 MHz of 2300-MHz spectrum in eight of India’s 22 telecoms circles.
Airtel announced in a stock exhange filing that it has now concluded the acquisition in six of the eight circles – Tamil Nadu, Bihar, Jammu and Kashmir, West Bengal, Assam and North End.
The operator announced it will issue a new market update once the transactions are closed for the remaining two circles of Andhra Pradesh and Orissa.
Airtel was required to surrender 1.2 MHz of spectrum in one circle as the acquisition would have left the company is breach of regulations limiting operators from holding more than 25% of the total spectrum allocated in a single circle, sources told Press Trust of India.
But Maxis, which owns 74% of Aircel, is facing legal action from an activist lawyer over proposed deals with Airtel and RCom. The lawyer, Prashant Bhushan, had called for the spectrum.
Questions & Answers
Q.Which specific spectrum frequencies did Airtel acquire from Aircel?
Which specific spectrum frequencies did Airtel acquire from Aircel?
Airtel acquired 20 MHz of 2300-MHz spectrum. This acquisition was cleared by the Telecom Ministry, allowing Airtel to expand its 4G network capabilities in several regions.
Q.Why did Airtel have to surrender some of the acquired spectrum?
Why did Airtel have to surrender some of the acquired spectrum?
Airtel was required to surrender 1.2 MHz of spectrum in one circle. This was to prevent the company from breaching regulations limiting operators to holding no more than 25% of the total spectrum in a single circle.
Q.What is the total value of the 4G spectrum acquisition?
What is the total value of the 4G spectrum acquisition?
The total value of the 4G spectrum acquisition from Aircel is 35 billion Indian rupees. This figure translates to approximately $521.2 million, as stated in the article.
Q.Which specific circles still await the completion of the spectrum transaction?
Which specific circles still await the completion of the spectrum transaction?
The transactions are yet to be closed for the remaining two circles of Andhra Pradesh and Orissa. Airtel has already concluded the acquisition in six other circles and will issue a market update upon full completion.
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